Clarke earns $13-million in 2025

Executive Summary

• Clarke Inc. reported a decline in net income for the full year 2025 to $13.0 million, down from $37.8 million in 2024, primarily due to a significant decrease in fair value adjustment gains on investment properties.
• For the fourth quarter of 2025, the company reported a loss per share of $0.03, compared to earnings of $1.54 per share in the same period of 2024, driven largely by the absence of the large fair value gains recorded in Q4 2024.
• Book value per common share increased by 6.2% to $21.08 at year-end, while the common share price closed at $20.93.

Key Details

• Full Year 2025 Net Income: $13.0 million (vs. $37.8 million in 2024).
• Full Year 2025 Comprehensive Income: $17.6 million (vs. $46.4 million in 2024).
• Fair Value Adjustments (Investment Properties):
  • 2025: $14.9 million gain.
  • 2024: $34.0 million gain.
• Q4 2025 Net Income Impact: Decreased quarter-over-quarter primarily due to the absence of the $29.9 million fair value adjustment gain recorded in Q4 2024.
• Q4 2025 Revenue: Hotel and rental revenue remained stable at $16.7 million quarter-over-quarter.
• Per Share Metrics (Full Year 2025):
  • Book value per common share: $21.08 (increase of $1.23 or 6.2%).
  • Common share price: $20.93.
• Operational Income Breakdown (Full Year 2025):
  • Hotel Net Operating Income: $21.5 million ($1.54 per share).
  • Residential Net Operating Income: $7.4 million ($0.53 per share).
  • Depreciation and Amortization: $12.3 million ($0.88 per share).
  • Interest and Accretion: $10.8 million ($0.78 per share).
  • Hotel Revaluation Losses: $1.5 million ($0.11 per share).
  • Hotel Revaluation Gains (Other Comprehensive Income): $2.5 million ($0.18 per share).
• Q4 2025 Loss Per Share: $0.03 (basic and diluted).
• Q4 2024 Earnings Per Share: $1.54.
• Other Comprehensive Losses (Q4 2025): $1.5 million (vs. $200,000 in Q4 2024), primarily due to higher remeasurement loss on accrued pension benefit asset.
• Debt/Interest Commentary: Interest and accretion expense increased year-over-year despite lower interest rates, attributed to higher average long-term debt balances from ongoing construction expenditures.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.